Journal of Financial Services Research

, Volume 11, Issue 1–2, pp 189–204 | Cite as

Do Black-Owned Banks Discriminate against Black Borrowers?

  • HAROLD A. Black
  • M. Cary Collins
  • Ken B. Cyree
Article

Abstract

Black-owned and white-owned banks are studied to test for lending discrimination based on applicant's race. Using single-equation models the rndings suggest that black-owned banks may utilize applicant race in the mortgage granting decision. The result holds in a naive HMDA model and in an enhanced HMDA model with bank-specirc, demographic, and neighborhood characteristics added.

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Copyright information

© Kluwer Academic Publishers 1997

Authors and Affiliations

  • HAROLD A. Black
    • 1
  • M. Cary Collins
    • 1
  • Ken B. Cyree
    • 2
  1. 1.University of TennesseeKnoxville
  2. 2.Bryant CollegeSmithreld

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